I'm going to try and break this down so that the lefties understand. The biggest problem with giving so much responsibility to "the government" is that, in order for them to even attempt to carry out these duties, they must first get their billions of dollars from the citizens. Remember, the government has no money until it is taken from the people.
Now, when the government has all this money, it is not some robotic, unbiased, objective entity that is doling out the cash. The money is controlled by people - biased, emotional, fallible people. Therefore, these people in charge of everyone else's money can funnel it towards the causes they support, and more. Remember, the bigger something is, the harder it is to keep tabs on it and follow up on all the details. This arrangement inevitably results in fantastically large amounts of money being spent on projects and programs that benefit the status quo. What that means is it benefits the people in power, the people who already have control of the money.
For instance, Big Labor extracts money from their members - lots of it - and donates much of it to the Democrats. The Democrats in turn make laws benefitting Big Labor (which means labor bosses mostly) who can then expand their membership and ultimately their coffers. They can then donate even more money to the Democrats to get more Democrats elected, and the vicious cycle continues to grow.
Another example is the millions and millions of dollars going to "public service" or "community service" groups. It would be one thing if these groups really were just doing work in the community. However, time and time again (ACORN is the latest example) these groups are actively doing political work. They use taxpayer money to promote a very specific legislative agenda or politician, who will in turn give them more taxpayer money, and the vicious cycle continues to grow.
Here is a great, real time example. Taxpayer money is going to schools in LA to train them in union organizing and negotiating and striking.
Therefore, what fiscal conservatives and libertarians are trying to say is that the more money the government takes from people, the more opportunity there is for corruption, and more importantly, it turns our representative democracy on its head. When these groups become so big and bloated with other people's money that they hold all the power, then us little guys who have no affiliations end up getting trampled. I believe that the intentions of the founding fathers and the purpose of our Consitution and Bill of Rights were to protect the individual's interests from being run over by giant special interest groups.
I don't understand what is so hard to comprehend about this. Keeping the government coffers small forces them to use the money for what is truly needed, and keeps the little guy from getting trampled by groups that are using his own money to trample him and his voice.